Study reveals where it's actually cheaper in the UK to buy property than it is to rent with Portsmouth leading the way
Portsmouth was the best area in the UK to buy compared to renting, with mortgages 12.99% cheaper than renting. Burnley was second, with mortgages 12.96% less expensive than rent, and Manchester was third, with 11.18%. There were only 14 local authorities where it was cheaper to buy than to rent.
A new study has revealed that Portsmouth is the cheapest city to buy a house compared to renting.
Property and conveyancing solicitors Jones Whyte analysed the latest 2024 ONS data on house prices, rent prices, and household income to determine in which local authorities in England and Wales it was cheaper to buy a house rather than rent.
The monthly cost of buying a house was calculated with a representative mortgage with a 4% interest rate, a 25-year repayment period, and a deposit of 15% of the average house price in each area.
| The 10 UK areas where it is best to buy by the relative price of a mortgage compared with rent | ||||||
| Rank | Local authority | Average house price | Monthly mortgage repayment | Average monthly rent cost | How much cheaper it is to buy than to rent (%) | How much cheaper it is to buy than to rent (£) |
| 1. | Portsmouth | £251,343 | £1,128 | £1,296 | 12.99% | £168 |
| 2. | Burnley | £112,910 | £507 | £582 | 12.96% | £75 |
| 3. | Manchester | £250,623 | £1,124 | £1,266 | 11.18% | £142 |
| 4. | Bristol | £354,210 | £1,589 | £1,741 | 8.72% | £152 |
| 5. | Newcastle upon Tyne | £207,373 | £930 | £1,005 | 7.42% | £75 |
| 6. | Southampton | £242,286 | £1,087 | £1,172 | 7.25% | £85 |
| 7. | Tower Hamlets | £481,699 | £2,161 | £2,294 | 5.79% | £133 |
| 8. | Nottingham | £201,001 | £902 | £937 | 3.76% | £35 |
| 9. | Southwark | £494,757 | £2,220 | £2,298 | 3.40% | £78 |
| 10. | Lincoln | £185,225 | £831 | £854 | 2.69% | £23 |
Portsmouth was the best city in the UK to buy a house compared to the cost of renting, with a representative mortgage costing 12.99% less than the average rent in the area. A representative mortgage was £1,128 while average rent was £168 a month more at £1,296.
Burnley was second, with mortgages 12.96% cheaper than rent on average. Monthly mortgage costs stood at £507 and average rent was £75 per month more expensive at £582.
Manchester ranked third. A mortgage was £1,124 and rent was £142 more expensive on average at £1,266, a difference of 11.18%.
In fourth was Bristol, with mortgages costing 8.72% less than rent on average. Mortgages were £152 cheaper per month at £1,589 monthly, while rent was £1,741 monthly.
Newcastle was fifth, with a representative mortgage costing 7.42% or £75 less per month than rent.
Southampton came sixth, with mortgages 7.25% cheaper, and Tower Hamlets was seventh, with 5.79% cheaper mortgages than rent.
Nottingham, Southwark, and Lincoln completed the top 10, with mortgages 3.76%, 3.4%, and 2.69% cheaper, respectively.
Michael McLean, Partner and Solicitor Advocate at Jones Whyte, commented on the findings,
“Historically, renting tended to be cheaper than buying. However, this is becoming less true as time goes on, which prompted us to look at just how much cheaper renting was than buying a house, and if there were any areas where it was cheaper to buy than rent.
“We found 14 local authorities where a representative mortgage cost less than average rents, including major cities such as Manchester, and even a borough of London in Tower Hamlets. This might signify how desirable moving to these areas may be, and that rents may have risen more quickly in these areas in response to this when compared to housing costs.”